BOS-I Interest only and 3 years left for mortgage


Frequent Poster
Hi, a friend is paying interest only (tracker) on BOS-I tracker mortgage being handled by Pepper. House is PPR and is in positive equity. €100,000 left, value €250,000. Since going interest only, no payments have been missed. She can afford to start paying some principal but not enough to clear mortgage in three years. She reaches 65 in five years and will continue to work into retirement for a modest salary. She would expect to clear the mortgage in 10 years if she was allowed. However the mortgage is due to finish in 3 years and pepper has written to ask if she can pay off the debt at that time or if she needs to discuss her circumstances. They have said the term could be extended for two years.

What are the chances they would let her extend for 10 years? Her husband is retired on state pension only. They do not want to move but think they might be forced to and are getting anxious about not being able to repay the capital. They want to meet with the bank and discuss extending the term to 10 years. Any advice would be very grateful. Thanks.

Gordon Gekko

Frequent Poster
Did she not see this day coming and if she can clear it over ten years and she’s five years from retirement, why didn’t she switch to capital plus interest 5 years ago?

A credit union may be her best bet.


Frequent Poster
She did see the day coming but can only now start to pay capital plus interest with 3 years to go on the term. They have been thinking that they were going to have to sell as their only option. Are you suggesting that they get a loan from the Credit union to clear the balance? The interest rate would be higher than the current tracker. Would credit union give a loan until you were 75? With a higher interest rate they might not make full repayment in 10 years.

Are there cases where banks extend the term well beyond the original term ? Some threads on the mortgage arrears forum suggest this.
If they have offered her two years, they might give her a bit more.

Whatever happens, she needs to start overpaying the mortgage immediately. In three years time, she will have the balance down.

It's hard to know what will happen then. Maybe Pepper would start legal proceedings. If they did by the time they get a court order, she would have paid off the mortgage.

So she should go to Pepper now and ask for 10 years i.e. an extension of 7 years.
They will probably refuse.
She should not sign a deal to pay it over 5 years if she is unable to do so, as that means she would go into arrears and they could begin legal action earlier.